A corporate report should explain how the company creates value for current and future generations of shareowners.
Value creation for current and future generations of shareowners requires that the board of directors and senior executives "have the courage to make long-term value-creating decisions despite the short-term consequences." (Marc Goedhart, Tim Koller, and David Wessels. The real business of business. McKinsey & Company. March 2015.) This characteristic is the foundation for balancing demands for short-term competitiveness and profitability with the imperative for the long-term viability of the company.
The concept of value creation for current and future generations is, in my non-legal opinion, consistent with the board of directors fiduciary duty to act in the best interests of the corporation. In some states, the board also has a fiduciary duty to act in the best interests of the shareowners.
Founded Mike Krzus Consulting after retiring as a Partner of Grant Thornton LLP in 2011. Work history also includes Arthur Andersen, Illinois Central Railroad, BDO Seidman, Checkers Simon & Rosner, and Illinois Central Gulf Railroad. A 38-year career focused on SEC rules and regulations, accounting principles, audit and assurance standards, financial reporting, internal audit, developing and presenting continuing professional education, public policy, sustainability reporting, and integrated reporting.
Member of the SAM Research AG Faculty core team; a Cecil and Ida Green Honors Professor at Texas Christian University, Neeley School of Business; and one of Trust Across America's Top 100 Thought Leaders in Trustworthy Business Behavior.
Author/coauthor of three books, five book chapters, and 40 articles, research papers, and business cases. Speaker at 48 corporate, investor, and academic events in 12 countries.
Proud to have served three years in the U.S. Army, including a tour of duty in Vietnam with the 3rd Brigade, 1st Cavalry Division (Separate).